Juul's Consumer Settlement Is 'Reasonable & Adequate', US Judge Says

  • Juul Labs Inc, a unit of Altria Group MO, has reportedly secured preliminary court approval of a $255 million settlement resolving consumer claims for deceptive marketing.
  • The settlement is part of a larger agreement by Juul to resolve several lawsuits by school districts, local governments, and individuals accusing it of contributing to a youth vaping epidemic.
  • U.S. District Judge said the proposed class action settlement resolving claims by consumers who said they overpaid for Juul's vaping products was "fair, reasonable, and adequate." Reuters reported citing a court filing.
  • In December, Juul Labs agreed to pay over $1 billion to resolve about 10,000 lawsuits covering over 5,000 cases.
  • The class action settlement resolves claims for people saying they would have paid less or not bought the e-cigarettes if Juul had not downplayed the products' addictiveness and appealed to teenagers.
  • Juul had agreed to pay $438.5 million in September to settle claims by 34 U.S. states and territories.
  • In June, the FDA briefly banned Juul's e-cigarettes, though it later put the order on hold following an appeal.
  • Juul Labs received a new lifeline with a fresh capital infusion to stave off the proposed bankruptcy in November.
  • Price Action: MO shares are down 0.89% at $44.54 during the premarket session on the last check Monday.
  • Photo via Wikimedia Commons
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